Stoc ockhold olders Pres esentation ion Stoc tockh kholde - - PowerPoint PPT Presentation

Stoc

• ckhold
• lders

Pres esentation ion

Warren Buffet

Where

What

Who How

Why

When

Stoc tockh kholde lders s Prese Presenta tatio ion

 PURPOSE

• Demonstrate what has been learned
• Become familiar with financial statements.
• Prepare, present, and explain financial statements.
• Present related information, including charts and graphs.
• To allow all company members to participate in a formal

rehearsed presentation.

 IMPORTANCE

• Recognition of effort.
• Counts as one fourth of top company score.

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Pres esentation ion

COMPETITION AND SETTING

 ONE ROOM

• Companies will rotate into room
• Fifteen minutes total
• Three minutes for setup/take down
• Twelve minute presentation

 TWELVE MINUTE PRESENTATION

• Present twelfth quarter decision to judges
• Present financial statements
• Management discussion and analysis
• Two minutes for questions

ONLY MATERIALS SUPPLIED BY PFEW MAY BE USED IN THE PRESENTATION

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Pres esentation ion

PANEL OF JUDGES REPRESENT THE STOCKHOLDERS

MANDATORY CONTENT 1) Financial Statements 2) Management’s Discussion and Analysis 3) Judges’ Questions

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FINANCIAL STATEMENTS

• Presentation must include:
• 1. A two-year (8 consecutive quarters) comparative

Statement of Income & Profits Retained

• 2. Balance Sheet (also two-year comparative)

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FINANCIAL STATEMENTS

• STATEMENT OF INCOME & PROFITS RETAINED
• Year to year or two-year comparative
• 8 consecutive operating quarters
• Measurement over a fiscal operating period
• Total income
• Total expenses
• Profit before taxes
• Taxes
• Net income
• Dividends
• Profits Retained

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Pres esentation ion

Widget Manufacturing Company Statement of Income & Profits Retained For the Year Ended December 31, 2018 Quarter 0 Example

INCOME 2018 2017 %Chg Sales $1,190,000 $1,276,000

• 6.7%

Cost of Goods Sold

• 595,000
• 637,000
• 6.6%

Gross Margin $595,000 $639,000

• 6.9%

Interest Income 2,000

• 100%

Total Income $595,000 $641,000

• 7.2%

EXPENSES Quality & Product Dvlp. $60,000 $85,000

• 29.4%

Selling/Adv. & Mkt. Research 95,000 95,000

0.0%

Warehousing (Inventory Exp.) 23,000 29,000

• 20.7%

Interest Expense 28,000 27,000

3.7%

Other Expense

0.0%

Overhead Expense 200,000 200,000

0.0%

Depreciation 65,000 64,000

1.6%

Total Expenses $471,000 $500,000

• 5.8%

Profit Before Taxes $124,000 $141,000

• 12.1%

Taxes

• 50,000
• 56,000
• 10.7%

Net Income (Loss) $74,000 $85,000

• 12.9%

Dividends

• $5,000
• $5,000

0.0%

Profits Retained $69,000 $80,000

• 13.8%

*

• Year to year or two-year comparative
• Qtr 4 of Year 1 and Qtr 4 of Year 2
• Corporate snapshot in time
• Assets
• Liabilities
• Stockholder’s Equity

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FINANCIAL STATEMENTS

• BALANCE SHEET

Balance Sheet

• Shows the assets of the corporation, its liabilities,

and the owner’s equity

• Portrays the financial position as of the date stated

in the heading of the statement

• Observe that Total Assets equal the Total of

Liabilities and Equity Example ……….

Widget Manufacturing Company Balance Sheet As of December 31, 2018 Quarter 0 Example ASSETS 2018 2017 %Chg Cash $100,000 $47,000

112.77%

Inventory $68,000 $56,000

21.43%

Total Current Assets $168,000 $103,000

63.11%

FIXED ASSETS Plant and Equip. (at cost) $2,165,000 $2,160,000

0.23%

Accumulated Depreciation $- 65,000 $-64,000

1.56%

Net Plant and Equipment $2,100,000 $2,096,000

0.19%

TOTAL ASSETS $2,268,000 $2,199,000

3.14%

LIABILITIES Loan Payable $1,100,000 $1,100,000

0.0%

Total Liabilities $1,100,000 $1,100,000

0.0%

EQUITY Common Stock $1,000,000 $1,000,000

0.0%

Retained Earnings $168,000 $99,000

69.70%

Total Equity $1,168,000 $1,099,000

6.28%

TOTAL LIABILITIES AND EQUITY $2,268,000 $2,199,000

3.14%

*

Management Discussion and Analysis

 Liquidity

 Capital Resources  Results of Operations  Common Stock Analysis Forward Looking Data

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 Liquidity – adequacy of cash:

• Did the company have enough cash

to continue operations?

• Did it borrow money to operate or

invest in a new plant?

+ =

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 Capital Resources:

• Discuss plant facilities
• Expansion during the period
• Financing of these assets…
• Did you borrow money to acquire

the assets?

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 Results of Operations:

• 1. Analysis of revenue and changes in revenue.
• 2. Trends that affected revenue or expenses,

i.e. inflation.

• 3. The extent to which increases in net sales or

revenues are attributable to price increases,

• r an increase in the number of units sold.
• 4. The effect of inflation on the sales and net

income of the company.

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• 5. The level of production, i.e. 100% of

capacity or less, and its effect on cost of production and net profit.

• 6. Spending for research and development

and advertising

• 7. Unusual or significant events which

affected or could affect operations.  Results of Operations (cont.):

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 Common Stock Analysis:

Your Company’s Stock (40,000 shares)

• Return on Equity (ROE)
• Earnings Per Share (EPS)
• Stock Price
• Dividend Policy

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 Forw ard Looking Data

• What do you see as the future of the company?
• This could include plans for new products, new

facilities, or acquisitions.

Remember!! Submit a copy of your 12th Quarter decision to the judges.

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SUPPLEMENTAL CHARTS & GRAPHS

Widget Manufacturing Company Widget Manufacturing Company

Widget Manufacturing Company

Widget Manufacturing Company

Line Graph Pie Chart Bar Graph Comparative Bar Graph

Note: Do not show Quarters 1 thru 8 on your Graphs. Show Year 1 with Quarters 1,2,3,4 Year 2 with Quarters 1,2,3,4

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Judges’ Questions:

• Designed to measure ability and understanding of the

management team

• Allow at least two minutes
• Standard set of questions
• Anything from the presentation
• Questions answered during management discussion

and analysis

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VERY important parts of the team!

Company Historians

Tools to help you succeed:

• Stockholder’s Presentation Guidelines

(will be handed out by your CA)

Will outline EXACTLY what the judges are looking for and mandatory content.

• Glossary Of Terms

(in your backpacks)

Explanation of important business terminology. Judges will be listening to hear if you are using these terms during your Friday Stockholder’s presentation.

• A link to this presentation

Can be found on the PFEW Program Page in your classrooms.

• Tuesday night bonus review session

Two company members will be able to ask specific questions.

TOP TEN THINGS TO DO!

• 10. Involve as many company members as you can
• 9. Have presentation support your stated strategy
• 8. Make eye contact
• 7. Use business vocabulary
• 6. Submit your 12th quarter decision
• 5. Save your financial statements to your flash drive

– upload your copy online

• 4. Allow time for questions
• 3. Time the presentation
• 2. Practice, Practice, Practice
• 1. Start early (today)!!

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TOP TEN THINGS NOT TO DO!

• 10. Make up data
• 9. Involve only one or two company members
• 8. Forget the 12th quarter decision
• 7. Forget to time the presentation
• 6. Forget your flash drive or have financials that don’t balance!
• 5. Use unauthorized materials
• 4. Discuss a strategy not supported by operations
• 3. Rehearse past 10:45 p.m.
• 2. Wing it
• 1. Wait until Thursday to start

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Pres esentation ion